Rice Derivative Market
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The global rice derivative market was valued at USD 19.1 billion in 2024 and is estimated to grow at a CAGR of over 5.8% from 2025 to 2034. The rice-based market for value-added products is expected to increase for food and beverage, pharmaceutical, and nutritional supplement industries. Interest towards rice starch, rice flour, and rice protein, which are the most common derivatives of rice, is on the rise due to their hypoallergenic, gluten-free, and multi-functional attributes.
Starch derived from rice has enormous potential as consumers increasingly lean toward organic and plant-based alternatives to synthetic and animal-based ingredients. In addition, the possibilities of usage of agricultural rice by-products are widening in multipurpose, baked, and infant foods. These rice-based ingredients enhance the product's texture and stability while improving the nutritional value, thus making the rice ingredients indispensable in a wide range of functional foods and specialized nutrition products.
| Report Attribute | Details |
|---|---|
| Base Year: | 2024 |
| Rice Derivative Market size in 2024: | USD 19.1 billion |
| Forecast Period: | 2025 to 2034 |
| Forecast Period 2023 - 2032 CAGR: | 5.8 |
| 2023 Value Projection: | USD 33.6 billion |
| Historical Data for: | 2021 – 2024 |
| No of Pages: | 380 |
| Tables, Charts & Figures: | 300 |
| Segments Covered: | Ingredient Type, Nature, Form, Application |
| Growth Drivers: |
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| Pitfalls Challenges: |
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Furthermore, higher allocations of funds and resources toward research & development is increasing innovation in the design and application of rice products, thus making it possible for the market to respond to the needs of the more health-conscious consumers. The market potential is greater as the people are becoming aware of the health benefits of organic rice derivatives as well as the demand for fortified and clean-label products.
Major players in the rice derivative market are trying to widen the scope of their portfolio to cater to other end-use markets, while improvement in processing technologies is increasing the productivity and quality of rice derivative production. This rate of growth is expected to be strong due to anticipated changes in regulation on sustainable sourcing and manufacturing practices which are already emerging globally.
The rice derivative industry is growing rapidly because of the increasing popularity of natural and organic food ingredients, particularly those which are plant-sourced and gluten-free. There is a growing acceptance of rice derivatives, including rice protein, rice starch, and rice flour, as healthy and nutritious foods because they are non-allergenic and easy to digest.
At the same time, the shift toward greater transparency in food labeling is progressing and it also supports increased use of rice products in functional foods, baked goods, or enriched beverages. Moreover, the advances in processing technology are improving product quality and increasing its usability in cosmetics and pharmaceuticals. To benefit from this opportunity, companies are increasing their portfolios with new rice-based products for new market segments, which will in turn positively impact the growth of the industry.
The rice derivative industry is undergoing a complete transformation brought by the recent developments pertaining to sustainable and plant-based diets. The positive attributes associated with rice proteins, starch or rice flour have slowly gained popularity as these constituents are considered ideal for gluten-free, non-allergic and organic products. These ingredients are exceptionally popular in the functional foods and beverages market as well as for texturizing, nutrition, and stabilization of bakery products, snacks, and infant formulas.
The clean-label trend shift has increased the consumers’ need for such minimally processed derivatives. Besides, the international campaign towards food security and sustainability encourages and directs producers to harness rice as a renewable resource, which only strengthens its position in the future production equation.
The challenges posed by competition from soy and almond products, as well as the raw materials price fluctuations, affect effective pricing within the rice derivative market. However, these issues are being addressed due to new product development and advanced processing techniques resulting from persistent R&D investment. Furthermore, these rice-based products with skin-friendly properties are in high demand and create new opportunities in the cosmetics and pharmaceutical industry. As the market becomes more environmentally conscious and moves towards sustainable raw material sourcing and production, there will be an increase in demand for rice-based products across various industries, helping market to grow.
The rice derivative market for product type is segmented into rice starch, rice bran, rice germ, rice oil, rice protein, rice fats, rice flour, ready to use powder, liquid rice blend and others. The leading rice starch market sales was around USD 3.7 billion in revenue during 2024 and is expected to reach USD 6.4 billion in 2034. The rice starch market is driven by its extensive application in food, pharmaceutical and cosmetic sectors, where it is valued for its high texturizing, hypoallergenic, and stabilizing capabilities.
Due to its thickening ability, moistness retaining property in baked goods, and improvements in mouthfeel, rice starch is used in gluten-free and clean-label formulations in the food industry. In medicine, it is used as an excellent binder and disintegrant, while in cosmetics, it is appreciated in skin-friendly products because it has absorbent and finish qualities. Rising consumer preference towards gluten-free, plant-based and natural ingredients further intensifies the importance of rice starch which marks a shift towards healthier, more sustainably made functional products.
The rice derivative market is divided into organic and synthetic based on the nature of the products. The synthetics segment holds a dominant market share of 55.1% in 2024. With mass production comes high demand for synthetic variants from large scale food and industrial manufacturers where cheap and stable ingredients, like those found in processed foods, are the norm.
In addition, being able to modify the chemical structure and functional properties of synthetic derivatives in addition to mass production is a strong reason to use dope them in many industries, especially pharmaceuticals and cosmetics where strict formulation control is required. At the same time, there is a growing market for organic food as people are more aware and drawn towards natural ingredients, which means that the organic segment is bound to grow. However, the market for synthetic ingredients will remain as the most affordable and reliable option.
In 2024, the China rice derivatives market was worth USD 2.6 billion. Its consumption is likely to be the largest within the Asia Pacific region due to huge requirements from within China coupled with the country being one of the major producers of rice. With rice extensively cultivated in the country, there is never a shortage of many raw materials such as starch, rice bran, rice protein and other rice derivatives that are required in food, pharmaceuticals, and cosmetics.
Furthermore, with rising concerns of consumers and gluten intolerance, the need for rice products is higher. The increase in the Chinese economy is also improving the processed food market as well, with high requirements for rice-based products which are used as stabilizers, texturizers, and nutritional enhancers. Adequate investment in technology and infrastructure for rice processing will guarantee that China remains one of the leaders of the Asia Pacific market.
Industries involved in food production and their products comprise major multinationals and sizable domestic enterprises. Cargill operates in the agriculture, food, and nutrition industries all over the world, and quite dominantly is Associated British Foods, one of the leading British multinational companies whose core business is food production. In addition, Cargill has joint venture with Adani Group, Adani Wilmar, which is one of the largest food processors, is also a big participant in the edible oil and other food products industry.
Kowa India is also emerging as a key player in food, nutrition and chemicals, and is a helpful market diversified. Similarly, Shafi Gluco Chem is a well-established and actively involved supplier of food ingredients with specialization in glucose-based products. Agarwal Group of industries and Jain Group of Industries are also known across the industry for starch and other agriculture products, while Jain Group of Industries deals with food ingredients.
Muerens Natural and Asharam & Sons have been able to capture more market share via the clean-label product category with the use of organic formulations. SACCHETTO is an industry leader in food packaging and ingredient supply and is gaining a reputation for innovation in sustainability and shelf-life extension technologies. RIBUS adds to the profiles of ingredients available in the marketplace by producing rice-based ingredients. Such players which are using natural, organic, or chemically modified organic ingredients help meet the complied and compiled needs of a rapidly growing segment of health conscious and environmentally friendly consumers.
Major players operating in the rice derivative industry are:
Market, By Ingredient Type
Market, By Nature
Market, By Form
Market, By Application
The above information is provided for the following regions and countries:
The rice starch segment generated USD 3.7 billion in revenue in 2024 and is expected to reach USD 6.4 billion by 2034, led by its diverse applications and valued properties such as texturizing, stabilizing, and hypoallergenic characteristics.
The key players in the industry include Cargill, Kowa India, Adani Wilmar, Shafi Gluco Chem, Paras Group, Associated British Foods, Agarwal Group of Industries, Jain Group of Industries, Muerens Natural, Asharam & Sons, SACCHETTO, and RIBUS.
The China market was valued at approximately USD 2.6 billion in 2024, leading the Asia-Pacific region, primarily driven by high domestic demand and China
The market size of rice derivative reached USD 19.1 billion in 2024 and is set to grow at a 5.8% CAGR from 2025 to 2034, driven by rising demand across various sectors such as food and beverage, pharmaceuticals, cosmetics, and nutritional supplements.